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Strandline Resources

Market Cap

AU$107.2m

Last Updated

2021/04/12 08:12 UTC

Data Sources

Company Financials +

Executive Summary

Strandline Resources Limited, together with its subsidiaries, engages in the exploration and evaluation of mineral sands, and other base metal resources in Australia and Tanzania. More Details


Snowflake Analysis

Flawless balance sheet with exceptional growth potential.

Share Price & News

How has Strandline Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STA is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: STA's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

0%

STA

3.7%

AU Metals and Mining

2.6%

AU Market


1 Year Return

105.0%

STA

55.9%

AU Metals and Mining

37.1%

AU Market

Return vs Industry: STA exceeded the Australian Metals and Mining industry which returned 55.9% over the past year.

Return vs Market: STA exceeded the Australian Market which returned 37.1% over the past year.


Shareholder returns

STAIndustryMarket
7 Day0%3.7%2.6%
30 Day-26.8%0.9%3.3%
90 Day5.1%-1.0%4.6%
1 Year113.2%105.0%63.9%55.9%41.3%37.1%
3 Year85.4%78.3%75.8%51.2%36.2%19.8%
5 Year227.4%184.8%182.7%128.8%67.4%34.6%

Long-Term Price Volatility Vs. Market

How volatile is Strandline Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Strandline Resources undervalued compared to its fair value and its price relative to the market?

11.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STA (A$0.21) is trading below our estimate of fair value (A$0.23)

Significantly Below Fair Value: STA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: STA is unprofitable, so we can't compare its PE Ratio to the AU Metals and Mining industry average.

PE vs Market: STA is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate STA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: STA is overvalued based on its PB Ratio (4.4x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Strandline Resources forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

45.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: STA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: STA's is expected to become profitable in the next 3 years.

Revenue vs Market: STA's revenue (53% per year) is forecast to grow faster than the Australian market (5.7% per year).

High Growth Revenue: STA's revenue (53% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STA's Return on Equity is forecast to be high in 3 years time (34.5%)


Past Performance

How has Strandline Resources performed over the past 5 years?

3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STA is currently unprofitable.

Growing Profit Margin: STA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: STA is unprofitable, but has reduced losses over the past 5 years at a rate of 3.8% per year.

Accelerating Growth: Unable to compare STA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: STA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (26.1%).


Return on Equity

High ROE: STA has a negative Return on Equity (-40.8%), as it is currently unprofitable.


Financial Health

How is Strandline Resources's financial position?


Financial Position Analysis

Short Term Liabilities: STA's short term assets (A$17.7M) exceed its short term liabilities (A$1.5M).

Long Term Liabilities: STA's short term assets (A$17.7M) exceed its long term liabilities (A$278.7K).


Debt to Equity History and Analysis

Debt Level: STA is debt free.

Reducing Debt: STA has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: STA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: STA has sufficient cash runway for 1.5 years if free cash flow continues to reduce at historical rates of 19.8% each year.


Dividend

What is Strandline Resources's current dividend yield, its reliability and sustainability?

7.42%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate STA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate STA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of STA's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Luke Graham (45 yo)

4.58yrs

Tenure

AU$906,187

Compensation

Mr. Luke Edward Graham, A.Dip (Hons) (Elec Eng), MAICD, served as a Non-Executive Director of Primero Group Limited since May 21, 2018 until March 25, 2020. He has been the Chief Executive Officer, Managin...


CEO Compensation Analysis

Compensation vs Market: Luke's total compensation ($USD690.80K) is above average for companies of similar size in the Australian market ($USD285.26K).

Compensation vs Earnings: Luke's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: STA's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: STA's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.5%.


Top Shareholders

Company Information

Strandline Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Strandline Resources Limited
  • Ticker: STA
  • Exchange: ASX
  • Founded: 1999
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$107.194m
  • Shares outstanding: 522.90m
  • Website: https://www.strandline.com.au

Number of Employees


Location

  • Strandline Resources Limited
  • London House
  • Level 9
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Biography

Strandline Resources Limited, together with its subsidiaries, engages in the exploration and evaluation of mineral sands, and other base metal resources in Australia and Tanzania. Its principal mining asse...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/12 08:12
End of Day Share Price2021/04/12 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.